Multiple Choice
Reynolds Construction's value of operations is $750 million based on the free cash flow valuation model.Its balance sheet shows $50 million of short-term investments that are unrelated to operations, $100 million of accounts payable, $100 million of notes payable, $200 million of long-term debt, $40 million of common stock (par plus paid-in-capital) , and $160 million of retained earnings.What is the best estimate for the firm's value of equity, in millions?
A) $429
B) $451
C) $475
D) $500
E) $525
Correct Answer:
Verified
Correct Answer:
Verified
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